The interim government has crafted a blueprint for the LPG policy in 2024, proposing the deregulation of LPG pricing alongside a range of tax incentives. Under this draft, new LPG production would enjoy a 10-year tax holiday, while petroleum levy would be abolished, and GST reduced from 18 percent to 5 percent.
In this proposed framework, the Petroleum Division’s role would be confined to policymaking, with the regulatory authority, Ogra, assuming a more robust oversight role. Additionally, an “Appellate Tribunal” is set to be established to allow stakeholders to challenge regulatory decisions.
Engagement with key stakeholders, including gas exploration companies, refineries, and private sector entities, has been integral in shaping this draft. The refining industry has raised concerns over certain provisions, prompting a call for collective feedback to refine the policy further.
The State-Owned Enterprises (SOEs) are poised to receive support through partial exemption from procurement regulations to enhance their competitiveness.
The Securities and Exchange Commission of Pakistan (SECP) has greenlit the proposed draft, urging for further refinement based on stakeholder input before it’s presented to the Council of Common Interests (CCI) for approval. To boost the availability of affordable imported LPG, the draft suggests measures like eliminating advance income tax and gradually reducing GST.
Overall, the draft LPG policy envisions a more competitive and dynamic market, fostering growth and efficiency in the LPG sector.
Story by Khalid Mustafa
